Can we expect another bull run on palladium?

The price of the silvery-white metal, used in cars’ catalytic converters to limit harmful emissions, soared 270 per cent over five years to a record high above $2,800 a troy ounce in February. The number of catalytic converter thefts in London jumped to 8,248 last year, from 1,674 a year earlier.

The year began with expectations that demand for palladium would outstrip supply by more than 1m ounces. But today, leading producers and consultants are forecasting a market with a much closer match between supply and demand. Over the past few years, carmakers in Europe and China have increased the amount of metal they use in their catalytic converters in order to meet stricter emissions limits.

Carmakers can also replace palladium with platinum, but this is not easy to do without compromising the performance of the catalytic converter. In March, German chemical giant BASF said it had developed a new catalytic converter technology that enabled “partial substitution” of palladium with platinum, but still enabled carmakers to meet more stringent standards on emissions.

Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.